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Good News for those over 70 and Counting!

The IRA charitable rollover legislation passed by Congress has been signed by the President. This law extends the IRA charitable rollover retroactively for 2015 and makes it permanent at last! The legislation is part of a larger package of other tax extenders and the budget.

Under this legislation, if you are 70 ½ or older, you will be allowed to make certain charitable contributions directly from your Individual Retirement Account (IRA) to an eligible charity, and the transferred assets will not be recognized as income for tax purposes. This is almost always more favorable than paying taxes on a distribution, then donating and getting a tax deduction for the donation by increasing the amount available for donation.

The charitable IRA rollover, or qualified charitable distribution, makes it easier for you to use your IRA assets to make charitable gifts and might also be a great way to pay your pledge! It is a special provision that allows individuals age 70 1/2 or older to exclude from taxable income - and count toward their required minimum distribution - transfers of IRA assets, up to a total of $100,000, that are made directly to public charities, such as St. John's. To take advantage of the extension for 2015, donors need to arrange a direct transfer from their IRA to an eligible charity by December 31, 2015. Direct transfers from IRAs to an eligible charity made earlier in 2015 in anticipation of the IRA charitable rollover being extended will also count. This can also be a great way to pay your annual pledge!

Making a donation under this provision is simple and straightforward. If you would like to make a contribution to St. John's or another qualified charity from your Individual Retirement Account, please speak with your IRA administrator.